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CA Final Ind AS 109 Financial Instruments — practice questions — page 2

Explore 83 free Ind AS 109 Financial Instruments questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 109 Financial Instruments questions and exercises with answers

Showing questions 31–60 of 83.

Derivative instruments get their value from what?Read the answer and worked solution →A financial asset is best described as an asset whose value comes from what?Read the answer and worked solution →Which of these is a non-financial asset?Read the answer and worked solution →The 2008 joint IASB-FASB paper proposed reporting all financial instruments at what?Read the answer and worked solution →On which date did IFRS 9 come into force, replacing the earlier financial instruments standard?Read the answer and worked solution →Which earlier standard on financial instruments did IFRS 9 replace?Read the answer and worked solution →Which three main topics does IFRS 9 contain?Read the answer and worked solution →In IFRS 9 asset classification, what does SPPI stand for?Read the answer and worked solution →Which two tests decide how a financial asset is classified under IFRS 9?Read the answer and worked solution →A hold-to-collect debt asset passes SPPI. How is it measured?Read the answer and worked solution →Outside a hedge, how is a derivative asset measured?Read the answer and worked solution →A de minimis cash flow feature affects IFRS 9 classification how?Read the answer and worked solution →For FVOCI debt, where does the fair value gap over amortised cost go?Read the answer and worked solution →Own-credit change on a fair value option liability goes where?Read the answer and worked solution →FVOCI equity not held for trading: what happens to gains on sale?Read the answer and worked solution →A debt asset at FVOCI is sold. What happens to the OCI gain?Read the answer and worked solution →On acquiring a typical financial asset, the IFRS 9 impairment allowance covers losses over what period?Read the answer and worked solution →After a significant increase in credit risk, the IFRS 9 allowance is based on losses over what period?Read the answer and worked solution →Where is the change in the IFRS 9 impairment allowance reported?Read the answer and worked solution →In a cash flow hedge, where is the hedge result placed within equity?Read the answer and worked solution →Which range is the traditional hedge effectiveness rule in hedge accounting?Read the answer and worked solution →Without hedge accounting, IAS 39 puts derivative value changes where?Read the answer and worked solution →A cash flow hedge may be designated for which item?Read the answer and worked solution →A financial instrument gives one party an asset and the other?Read the answer and worked solution →What gives a derivative instrument its value?Read the answer and worked solution →Which term describes instruments whose value is determined directly by markets?Read the answer and worked solution →Which is a lock product that obliges both parties for the contract's life?Read the answer and worked solution →What does an option give its buyer?Read the answer and worked solution →At execution, a forward or swap is theoretically valued at what?Read the answer and worked solution →What does an option buyer pay the seller for the right acquired?Read the answer and worked solution →

Worked practice questions

Derivative instruments get their value from what?

  1. Fixed coupon payments only
  2. Cash held by the issuer
  3. Court-ordered valuations
  4. Underlying asset, index or rate
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Correct answer: D. Underlying asset, index or rate

A derivative's value is derived from an underlying asset, index or rate.

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A financial asset is best described as an asset whose value comes from what?

  1. A contractual claim
  2. Its physical use
  3. Registration of land
  4. Brand reputation
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Correct answer: A. A contractual claim

Bank deposits, bonds and shares are financial assets because their value is a contractual claim, not a physical form.

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Which of these is a non-financial asset?

  1. A term bank deposit
  2. A registered patent
  3. A corporate bond issue
  4. A firm's equity shares
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Correct answer: B. A registered patent

A patent is intellectual property, an intangible non-financial asset, with no contractual claim to cash.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 23 Borrowing Costs and Ind AS 40 Investment PropertyInd AS 103 Business Combinations